Why Offering Health Insurance to 1099 Contractors Is a Smart Business Move

If your business depends on freelancers or independent contractors, helping them access health insurance can be one of the most strategic moves you make. Not only does it help you retain talented 1099 workers and reduce costly turnover, but it also supports their well-being, which directly benefits your company’s stability and growth.

At GetErDone Insurance, we work with business owners who want to protect their people and strengthen their operations. Let’s break down why offering health insurance options for independent contractors is good for everyone involved.

The Hidden Cost of Turnover

If you’ve built your business with the help of 1099 workers, whether they’re virtual assistants, designers, delivery drivers, or independent consultants, you already know how important they are. But when you lose a great contractor unexpectedly, it can cause major disruptions and cost you more than you think.

Here’s what turnover really costs your business:

• Training time: Every new hire takes time to onboard, which pulls focus from client service and growth tasks.

• Workflow disruption: Missed deadlines, shifting responsibilities, and slower productivity all affect your bottom line.

• Lost brand familiarity: A seasoned contractor understands your tools, tone, and systems. A new one doesn’t, at least not right away.

When turnover happens repeatedly, productivity and consistency suffer. Offering access to health insurance can help you retain your best contractors and reduce those hidden costs.

Why Health Insurance Builds Loyalty with 1099 Workers

Providing health coverage or even helping freelancers find affordable plans tells your contractors that you care about their well-being, not just their work output. That kind of support builds long-term loyalty.

Here’s how:

• You become their preferred client. Contractors with multiple clients prioritize the ones who value them.

• It shows commitment. Helping with insurance signals you want the relationship to last.

• It reduces burnout. When people don’t have to worry about healthcare costs, they can focus better and perform at a higher level.

When contractors feel supported, they stick around, and that stability helps your business grow.

Health Insurance Solutions That Work for 1099 Teams

You don’t need to turn freelancers into full-time employees or offer traditional group plans to make a difference. There are flexible and compliant ways to support your 1099 workers.

• Partner with a licensed agency. At GetErDone Insurance, we guide independent contractors through personalized plan options that fit their budget, income, and family needs.

• Offer a small monthly stipend. Even a modest reimbursement helps cover premiums and sets your business apart.

• Explore group association plans. Many trade groups offer affordable health coverage for freelancers.

• Use HRAs (Health Reimbursement Arrangements). You can reimburse medical expenses without creating a traditional employee plan.

These approaches are simple, scalable, and show real care for your team without crossing legal boundaries.

How It Benefits Your Business Directly

Supporting your 1099 workers with health insurance isn’t just kindhearted, it’s a smart investment.

Business advantages include:

• Higher productivity. Contractors with reliable healthcare stay healthy and focused.

• Better satisfaction. Contractors who feel valued produce higher-quality work and communicate more effectively.

• Stronger reputation. When word spreads that you’re a business that supports freelancers, top talent will seek you out.

Taking care of your contractors helps them take better care of your business.

The Human Side: Why It Matters

Most gig workers don’t get employer-sponsored coverage. When you step up to help, it can change lives.

• Better access to care: Contractors can afford regular checkups and avoid serious health issues.

• More financial stability: Insurance reduces the risk of devastating medical bills.

• Peace of mind: Knowing they’re covered lets them focus on doing their best work.

When you make your contractors’ lives better, you create stronger, more reliable relationships that last.

Final Thoughts

Offering health insurance for your 1099 workers isn’t just generous, it’s strategic. You’ll save time on rehiring, keep your team consistent, and build trust with the people who drive your business forward. For your contractors, it means financial security, better health, and the confidence to keep doing great work.

If you’re ready to explore your options, GetErDone Insurance can help you create a simple, effective plan that supports your contractors and strengthens your business.

Visit www.GetErDoneHealth.com or message Devin McHazlett today to learn how you can offer real benefits to the people who help your business thrive.

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